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Negotiating w/landlord

The last post in this topic was posted 4841 days ago. 

 

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I'm in negotiations with a landlord for a retail salon, and now that I've signed the Letter of Intent, he's suddenly demanding copies of the business plan (which I'm quasi-OK with) and cash flow analysis and personal financial statement. I'm fine with providing a personal guarantee for the rent, as I live in a homestead exemption state and there's little likelihood that he could do any attachments to my home as the first $250K is exempt here.

 

We thought everything was good to go--they gave us keys two weeks ago, told us to go ahead and get bids on the buildouts, etc. We'd discussed that he'd have a lease available for review by our attorney by the end of this week too. Now today, I got a somewhat demanding/condescending email saying he wants personal financials for "the ownership" (who I know for a fact is his father). Has anyone had experience with a landlord demanding personal financials? Anyone have a feeling as to whether there is a legitimate "credit" business purpose for asking for this? I'm feeling funny on this one and just don't know if I'm being too sensitive...I'd offered to show him my current credit report, and he said he won't accept that--that he wants a personal financial statement.

 

Any sage advice???

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I'd tell him to stick it then! To ask/require a personal credit check is one thing and is pretty normal for businesses renting/leasing business buildings. But I have never been ask to provide nor would I provide any other personal finance info. I also sure as heck wouldn't show him any business plans either. I'd be looking for a new location so fast his head would spin.

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What does a landlord need to see a Business Plan for? Is there more to this, is he bankrolling? If not, I would leave. You have not signed the lease, leave now before things get worse. If you like the place, make them sign a NDA / Non-compete that lasts for 1 year after your lease is terminated before you show him anything.

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The owner isn't bankrolling anything. The only thing that kept this property on my list of 3 sites was that a discount grocery opened a few doors down and there's a lot of "new" traffic, the neighboring tenants don't seem to have any complaints, the demographics are ideal for an ethnic salon in a growing area, and this particular space was set up to be a salon when the future tenant backed out of a lease. This means that I don't have to pay build outs for an ADA-compliant bathroom, plus the plumbing has been done for 3 shampoo sinks and all of the extra electrical outlets are set up. Also, the drop ceiling is installed, along with nice lighting. All this will save me $20-25K over selecting a different property. Granted, I know other landlords would make build out concessions, but for the fact that this one is within a couple weeks of being ready to go, it seemed like the best choice.

 

The guy I've been dealing with doesn't seem to have a mind of his own & seems disorganized. I was hoping it was just him, not the whole company! I don't care if they do a personal credit check--my scores are fine. I'm so torn right now. My funding is within a week of being in place, and this is the address I'd used on all the loan docs too.

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its not uncommon for a landlord to ask for financials and a business plan. also, if your retail there may be triple net which in that case you may have to provide finacials may times during your tenancy....

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Well, the rep just called and we're meeting at 5 on Friday, so I'll give negotiations one round before I decide whether to walk away. I appreciate all the input...this was so easy at first, and now, between a FT job, a very-part-time grantwriting business and this new venture, my husband and I are running 18 hour days. I was beginning to think I wasn't being objective.

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its not uncommon for a landlord to ask for financials and a business plan. also, if your retail there may be triple net which in that case you may have to provide finacials may times during your tenancy....

 

 

Financials yes, business plan no. It is none of their business or concern what is in your business plan. Even Walmart and Target anchor 's do not ask for a business plan, nor do most mall's.

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